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Finance Bill

We announced yesterday that we remain convinced that a distance-based charge is the right way ahead, but it makes no sense to develop a system only for lorries when it is clear that the debate on national road pricing has moved on significantly since the last election. We thus announced that we would incorporate work on a lorry road user charge in our work on a national road pricing system. The hon. Member for Rayleigh reminded the House that I announced yesterday that the Government will not go ahead with the planned inflation-only increase of 1.22 p per litre on road fuel duty on 1 September, which will also apply to duties on rebated oils, biofuels and road fuel gases. We will review the position again at the time of the pre-Budget report. I welcome the fact that he described the decision as fair, although that did not seem to be the view of all his colleagues. The hon. Member for Broxbourne (Mr. Walker) advocated higher fuel duty and prices to discourage demand and reduce emissions from road traffic, which was his concern. While we are on hon. Members’ views on taxation, I tell the hon. Member for Braintree (Mr. Newmark) that the Sustainable Development Commission has a valuable role of advising the Government. However, just so he is clear, I should point out that it is the Chancellor, not the commission, who makes policy and decisions on tax.